IBM VMware Migration to 1111 Systems: Facts

Yes, IBM has transferred hundreds of its cloud VMware customers to 1111 Systems, a managed service provider, as part of a strategic move to streamline its cloud portfolio. This transition, which began in 2024, shifts the day-to-day management and support of these customers’ VMware workloads from IBM Cloud to 1111 Systems, while IBM retains the underlying infrastructure and contractual relationship. This article explains what this means for affected customers, why IBM made this move, and what the future holds for VMware on IBM Cloud.

Background: Why IBM Is Exiting the VMware Managed Business

IBM’s decision to transfer VMware customers to 1111 Systems is rooted in a broader strategic shift. IBM has been focusing its cloud efforts on Red Hat OpenShift and hybrid cloud solutions, which are seen as higher-growth areas. VMware, while still a significant enterprise workload, is increasingly seen as a legacy platform that doesn’t align with IBM’s long-term product roadmap. By partnering with 1111 Systems, IBM can offload the operational burden of managing VMware environments while still keeping the revenue from the underlying cloud infrastructure. This is a classic “managed services” model: IBM provides the hardware and data centers, and 1111 Systems provides the expertise and support.

Who Is 1111 Systems?

1111 Systems is a global managed service provider (MSP) that specializes in enterprise IT infrastructure, particularly in VMware, cloud, and data center services. The company has a strong track record of managing large-scale VMware environments for enterprises and government agencies. By taking over IBM’s VMware managed services, 1111 Systems expands its footprint significantly, gaining access to a large base of enterprise customers who were previously managed by IBM. This move positions 1111 Systems as one of the largest VMware managed service providers in the world.

How the Transition Works for Customers

For customers affected by this transfer, the transition is designed to be as seamless as possible. Here’s what typically happens:

• Notice: IBM and 1111 Systems notify affected customers well in advance, usually several months before the actual transfer date.
• No Infrastructure Change: The physical servers, storage, and network infrastructure remain in IBM Cloud data centers. There is no migration of workloads to a new platform.
• Support Handover: The primary point of contact for support, billing, and technical issues shifts from IBM to 1111 Systems. This includes 24/7 monitoring, incident response, and patching.
• Contractual Updates: Customers may need to sign new service agreements with 1111 Systems, though IBM often remains the primary contract holder for the underlying infrastructure.
• Access to Tools: 1111 Systems provides its own management portal and tools, which customers will use to access their environments. IBM’s management tools may be phased out.

Most customers report that the transition is smooth, but it’s important for IT teams to update their contacts and familiarize themselves with the new support processes.

What This Means for Your VMware Workloads

The most common question from customers is: “Will my workloads be affected?” The short answer is no, not technically. Your virtual machines, applications, and data stay exactly where they are. However, there are some practical changes:

• Support Quality: 1111 Systems is a specialist in VMware, so many customers actually see an improvement in response times and expertise.
• Pricing: IBM has stated that there will be no immediate price changes for the first year, but customers should be prepared for potential adjustments in the long term. The pricing structure may change as 1111 Systems introduces its own service tiers.
• Service Level Agreements (SLAs): The SLAs may be renegotiated. 1111 Systems offers similar uptime guarantees, but the specific terms may differ.
• Innovation: 1111 Systems may offer newer VMware features or add-on services that IBM didn’t provide, such as advanced disaster recovery or cloud migration services.

Common Problems and How to Handle Them

While the transition is designed to be smooth, issues can arise. Here are some common problems and how to address them:

• Access Issues: If you can’t log into your management portal after the transition, contact 1111 Systems immediately. They will provide new credentials and verify your identity.
• Support Tickets Lost: Sometimes open tickets with IBM may not be fully transferred. Keep a record of all open issues and re-file them with 1111 Systems.
• Billing Confusion: You may receive invoices from both IBM and 1111 Systems during the transition. Clarify with both parties which services are billed by whom.
• Integration with Existing Tools: If you have automation scripts or monitoring tools that integrate with IBM’s APIs, they may need to be updated to work with 1111 Systems’ APIs.

If you encounter any of these issues, the best approach is to escalate quickly. Both IBM and 1111 Systems have dedicated transition teams to handle these problems.

How to Choose Between Staying or Leaving

If you’re an affected customer, you may be wondering whether to stay with 1111 Systems or move your workloads elsewhere. Here are some factors to consider:

• Cost: Compare the new pricing from 1111 Systems with alternatives like AWS, Azure, or on-premises solutions. Sometimes the transfer is a good opportunity to renegotiate.
• Expertise: If your team relies heavily on IBM’s managed services, you might prefer to move to a provider that offers a similar level of support. 1111 Systems is competent, but it’s a different company.
• Strategic Alignment: If you’re planning to modernize your infrastructure, this might be the time to evaluate a move to containers or other cloud-native technologies.
• Contract Flexibility: Check your contract for exit clauses. Some customers use the transfer as a chance to renegotiate terms or switch providers without penalty.

Remember, you are not obligated to stay with 1111 Systems. You can choose to migrate your workloads to another provider, but you’ll need to plan for the migration.

Comparison: IBM Cloud vs. 1111 Systems Managed VMware

To understand the change, it helps to compare the two offers:

• IBM Cloud: IBM provided VMware as part of its broader cloud offering, with a focus on enterprise integration and hybrid cloud. The management was done by IBM’s support team, which sometimes had a slower response time due to the size of the organization.
• 1111 Systems: 1111 Systems is a pure-play MSP, meaning VMware is their core business. They offer faster, more specialized support, and often more flexible service options. They may also offer additional services like security and compliance that IBM didn’t bundle.

For many customers, the transition to 1111 Systems is an upgrade in terms of service quality. However, if you were relying on IBM’s global presence and integrated services, you may need to adjust.

Frequently Asked Questions

Will my data leave IBM’s data centers?

No. Your data and workloads remain physically in IBM Cloud data centers. 1111 Systems only manages the VMware layer, not the underlying hardware. The infrastructure is still owned and operated by IBM.

Do I need to sign a new contract?

Yes, you will likely need to sign a service agreement with 1111 Systems. This agreement covers the management services, while your existing IBM contract may be amended to reflect the change. Read the new terms carefully, especially regarding SLAs and pricing.

Will my costs increase?

IBM has stated that there will be no immediate price changes, but long-term pricing may be adjusted. 1111 Systems may offer different pricing tiers, so you should review your new contract to understand any potential changes.

Can I opt out of the transfer?

Yes, you can choose to migrate your workloads to another provider instead of accepting the transfer. However, this requires planning and may involve migration costs. Some customers use this as an opportunity to renegotiate with IBM or move to a different cloud.

What happens to my existing support tickets?

All open support tickets are typically transferred to 1111 Systems. However, it’s wise to keep a record of your ticket numbers and re-file any critical issues with the new support team to ensure they are not lost.

Is 1111 Systems reliable?

1111 Systems is a well-established MSP with a strong reputation in the VMware community. They have experience managing large-scale environments and are generally considered reliable. However, as with any vendor change, it’s important to monitor their performance closely during the first few months.

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